Tuesday, November 16, 2010

WireCo WorldGroup Inc. Acquires Grupo Oliveira Sá

David Hornaday
Sr. Vice President & Chief Administration Officer
WireCo WorldGroup
816-270-4710

KANSAS CITY, Missouri - November 16, 2010 – WireCo WorldGroup Inc. (WireCo), the world’s leading producer and marketer of specialty wire ropes, acquired Grupo Oliveira Sá and certain other assets comprising its worldwide business, collectively Oliveira.  Terms of the transaction were not disclosed.

Ira Glazer, WireCo CEO, said, “The Oliveira acquisition is the continuation of our strategy to strengthen our leadership in our core markets, to bring access to new geographic and end markets, and to expand our synthetics capabilities.  Oliveira, which manufactures high performance synthetic ropes targeted at deepwater mooring line and towing applications, serves marine markets that are highly complementary to our existing offerings, including offshore oil and gas and fishing. In combination with our December 2009 merger with Phillystran, we believe we will now offer the market a full package of technologically advanced synthetic ropes.  In addition, Oliveira has a strong position in the global wire rope aftermarket for cranes, which we believe will further enhance our leadership in that segment.”

“Oliveira is highly respected in the market given its premium brand, product quality and strong global reputation with long-standing customers and key distributors,” continued Glazer.  “WireCo has a solid track record of integrating acquisition targets, and we expect a seamless transition for Oliveira’s customers and employees as we move forward.  Finally, I would like to thank Mr. Luis Oliveira Sá and his family for their support in completing this transaction.” 

WireCo expects Oliveira’s existing management team to remain with the company, as has been the case with previous WireCo acquisitions. WireCo also plans to maintain Oliveira’s manufacturing operations in Maia and Paredes and hopes to expand the utilization of both facilities, which would require investment in plant and equipment and create the potential for additional jobs. 
 
WireCo has completed multiple acquisitions in recent years that have enhanced its global market position in wire rope and synthetic ropes, including Phillystran in 2009, CASAR and Wireline Works in 2007 and Aceros Camesa in 2005.  In addition, the company has a joint venture with Wuhan Iron and Steel to build the world’s most modern wire rope manufacturing facility in China, which started production in 2009.

WireCo is owned by investment funds managed by Paine and Partners, LLC, the San Francisco and New York-based private equity firm.  The firm played a key role in facilitating the acquisition and arranging the financing for the transaction.